This is not as complicated as you make it, despite all the big words. You borrow money as cheaply as possible, and unless you have horrible credit you can almost always make a higher return on your money than the bank as you are more risk tolerant. By "you" I mean the average buyer.

This is generally true and not subject to market conditions. No that it matters, but I have a degree in economics.

That's where we differ in our interpretation of the situation. What you're essentially advocating is a borrow and invest strategy. You've used "risk" as your uncontrolled variable in all of this. I fail to see how adding risk is not subject to market conditions. There is a variable called Market Beta. I'd love to know where you can get a virtually risk-free 7% rate of return. Please do advise... I'm sure many people would love to achieve these sorts of returns with no risk.

The arguments I've posted above are actually rather simple and quite basic. And for someone who's looking to invest money by borrowing money, I find your comment about "big words" to be quite arrogant.

And, not that it matters, but I have a Masters degree specializing in finance, a Chartered Financial Analyst designation and have been working in investment management for over a decade. Not that it matters...